Home Economy Economic Activity KVH Industries to lay off 75 workers at Middletown plant

KVH Industries to lay off 75 workers at Middletown plant

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PBN Staff

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02/14/2024

KVH INDUSTRIES INC. is undergoing “transformative initiative” that will include a shakeup of its management team and laying off 20% of its workforce at its hardware manufacturing plant in Middletown, the company says. / COURTESY KVH INDUSTRIES INC.

MIDDLETOWN – KVH Industries Inc. says it is undergoing a “transformative initiative” that will include a shakeup of its management team and laying off 20% of its workforce at its hardware manufacturing plant on Aquidneck Island. The company said in a press release Tuesday that it will conduct a staged and orderly wind-down of manufacturing

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MIDDLETOWN – KVH Industries Inc. says it is undergoing a “transformative initiative” that will include a shakeup of its management team and laying off 20% of its workforce at its hardware manufacturing plant on Aquidneck Island. The company said in a press release Tuesday that it will conduct a staged and orderly wind-down of manufacturing activities at its Rhode Island facility. During this process, KVH plans to manufacture enough maritime satellite connectivity and satellite TV terminals needed to meet future demand. KVH expects to reduce its headcount by 75 employees, or approximately 20% of its workforce. A third of the reduction in personnel will take place by mid-March, with the balance completed in the second quarter of 2024, according to the release. The company said it expects to save $9.3 million from the reductions, with the full impact of the savings to be realized in 2025. KVH estimates that it will incur approximately $3.3 million of pre-tax charges for severance and other costs related to the restructuring, through the second quarter of 2024. KVH Industries employs 195 people locally, according to PBN’s 2024 Book of Lists. “Today’s announcement is the culmination of the board’s extensive examination for how to best position KVH for the future as our markets continue to evolve,” said David Tolley, chairman of KVH. “We have concluded that the company should migrate away from capital-intensive manufacturing to become a more agile sales and service-oriented organization, using our expertise and global reach to deliver exceptional value-added solutions to the end markets we serve. We believe this adjustment will enable us to leverage our strong reputation, customer relationships and technology in a more flexible and sustainable manner going forward.” In addition to the layoffs, KVH announced Roger Kuebel will be stepping down as chief financial officer on March 31, He will be succeeded by Anthony Pike, KVH’s vice president of finance and corporate controller on April 1. Kuebel will remain available to the company through April 12 to ensure a smooth transition. Also, Robert Balog, KVH’s chief operating officer with responsibilities for product engineering, will leave the company on April 12. Richard Driscoll, KVH’s senior vice president of network operations and service development, has taken on the additional responsibilities of chief technology officer, effective immediately.